The euro slipped against most major currencies in the European session on Monday as European stocks fell ahead of data on U.S. durable goods orders for July.
Economists are expecting the durable goods orders to fall 4.0 percent on month in July, after adding 3.9 percent last month. Excluding transportation, durable goods orders are expected to have grown by 0.5 percent from 0.1 percent decrease in the previous month.
The U.S. Federal Reserve is on its course of cutting down stimulus measures sooner, depending upon the strength of recovery. The Fed's change in policy largely attributes to economic data, which has been keenly watched by investors for more clues about imminent reduction of bond purchases.
Italy's coalition government is under intense pressure as Silvio Berlusconi's center-right party warned that they would withdraw their ministers from the government, if Prime Minister Enrico Letta's Democratic Party votes to bring down Berlusconi from the Senate, reports said over the weekend.
The PD party, meanwhile, reaffirmed their intention for Berlusconi's removal from the parliament, a move which challenge the government's stability.
Greece may need EUR 10 billion in additional financial support from its European partners, Finance Minister Yannis Stournaras said in an interview to a Greek newspaper on Sunday.
"If Greece needs further support, it will be around 10 billion euros," much smaller than the previous two programs, Stournaras told Proto Thema newspaper.
In economic news, a leading indicator for Eurozone's economic activity increased for a third consecutive month in July, signaling an improving economic outlook, the Conference Board said in a report today.
The leading economic index increased 1 percent month-on-month to 108.4 in July after a 0.4 percent rise in both June and May.
The euro retreated to 1.3365 against the greenback from an early high of 1.3392. The next likely support for the euro lies around the 1.325 area.
The euro hit a 4-day low of 131.64 against the yen, pulling away from an early high of 132.33. On the downside, the euro may probably seek support around 130.5 level.
Japan's Economy Minister Akira Amari said that a final decision on whether to go ahead with the proposed sales tax hike will be taken by Prime Minister Shinzo Abe in early October.
The decision may come before a meeting of the Asia-Pacific Economic Cooperation (APEC) Forum on October 7, at the latest, Amari told national broadcaster NHK.
The euro reached as low as 0.8580 against the pound, down from last week's closing quote of 0.8595. If the euro extends its bear move, it may find support around the 0.85 level.
